What is the difference between Ethereum and Bitcoin
Ethereum and Bitcoin are both decentralized, open-source cryptocurrencies that use blockchain technology. However, there are several key differences between the two:
Purpose: Bitcoin was created as a digital currency to serve as a decentralized alternative to traditional fiat currencies. Ethereum, on the other hand, was created as a platform for decentralized applications and smart contracts, with its cryptocurrency (Ether, or ETH) serving as a means of payment for transaction fees and computational services on the network.
Smart Contracts: Ethereum has a built-in programming language that enables developers to write smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. Bitcoin, on the other hand, does not have this capability.
Consensus Algorithm: Bitcoin uses a Proof-of-Work (PoW) consensus algorithm, in which miners compete to solve a cryptographic puzzle and add new blocks to the blockchain. Ethereum is in the process of transitioning from PoW to a Proof-of-Stake (PoS) consensus algorithm, which is more energy-efficient and scalable.
Block time: The time it takes for a new block to be added to the blockchain is called block time. In Bitcoin, the block time is 10 minutes, whereas in Ethereum, it is around 15 seconds.
Token issuance: Bitcoin has a limited supply of 21 million coins, while Ethereum has no set limit on the amount of Ether that can be issued.
Overall, while both Bitcoin and Ethereum are decentralized cryptocurrencies, they have different purposes and use cases, and are designed to serve different needs and solve different problems.
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